Chicago-based Byline Bancorp Inc., the holding company of Byline Bank, is acquiring Oak Park, Ill.-based Oak Park River Forest Bankshares Inc. in a cash-and-stock deal valued at about $42.0 million.
The total deal value is based on Byline Bancorp's $21.30 closing share price on Oct. 17. Under the terms of the deal, each outstanding common share of Oak Park River Forest will be converted into the right to receive 7.9321 common shares of Byline Bancorp and $33.38 in cash, upon the closing of the transaction.
Byline Bancorp currently estimates pretax expense reductions associated with the deal to be approximately 40% of Oak Park River Forest's unit Community Bank of Oak Park River Forest's expense base.
Byline Bancorp expects the deal to be approximately 5.5% accretive to earnings per share in 2020, excluding one-time merger-related transaction expenses, with an expected tangible book value per share dilution earnback period of about three years using the cross-over method.
The deal is expected to close in the second quarter of 2019.
Keefe Bruyette & Woods served as financial adviser to Byline Bancorp, with Sullivan & Cromwell LLP as legal adviser. Monroe Financial Partners Inc. served as financial adviser to Oak Park River Forest, while Vedder Price PC served as the company's legal adviser.